Print đź–¨

The Commission on Community College Finance of the Texas Higher Education Coordinating Board met on June 21 to evaluate workgroup progress and discuss financing options for Texas community colleges. A link to the full hearing can be found here.

This report is intended to give you an overview and highlight of the discussions on the various topics taken up. It is not a verbatim transcript of the discussions but is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.

 

Opening Comments

Chair Woody Hunt – Colleges dictate the future of our state; role of the Commission is to better define the state’s role as a funder for community colleges

 

Commissioner Harrison Keller, THECB

  • Community college enrollments have not changed dramatically overall in the last few years; but academic enrollment dropped 5% whereas there was an increase in workforce and dual credit enrollments
  • Partnered with institutional leaders to organize statewide listening tours; goal of tour to understand the needs of and opportunities for community colleges
  • Coordinating Board and host colleges held five virtual listening sessions
  • Recruited a steering committee to guide recommendations and work
  • Colleges very open about needs, goals, and constraints; consistent theme was need for workforce education options
  • Presidents of community colleges see workforce education as the future of community colleges
  • Challenge affording up to date workforce education opportunities
  • Increased demand for student mental health services
  • Cost pressures caused by dual credit enrollment because they often discount these courses; different revenue models between school districts and offered courses
  • Out of district students impact community college funding as they pay different tuition amounts
  • Colleges open to a shared services approach; desire to lower operating cost and increase opportunities for students
  • Shared services could be virtual courses shared across colleges, shared mental health support, technology purchasing agreements, and shared faculty in some cases
  • Conducting research projects to gather data on a variety of topics including dual credit outcomes and workforce programs
  • Prioritizing affordability to students

 

Dennis Jones, National Center for Higher Education Management Systems

  • Studied documents and design criteria to identify emerging trends in building a talent strong Texas
  • Requests that all components of state funding promote state goals
  • Funding model should fit specific needs of Texas; not copy another state
  • Approach to funding should fit the needs of local governments
  • Funding model must reflect both state and regional needs
  • Role of state funding to recognize that community colleges are locally governed
  • Unlike state universities, community colleges are locally funding enterprises; local funds and tuition should bear the brunt of base operation costs
  • Relationship between state and community colleges akin to relationship between state universities and federal government
  • The way the state connects funding to goals is to explicitly pay for degrees, and emphasize importance of workforce; production of all degrees and credentials needs to be recognized in state funding model
  • Community colleges should be rewarded for successful transfer
  • Additional weight should be given to degrees and credentials in fields considered high priority
  • To promote affordability in funding model, reduce sticker price for out of district tuition, identify funding from sources other than students, provide additional student financial aid, create financial aid programs aligned with part time and working students
  • District tax rates and enrollment numbers vary across the state; some colleges need additional state funding
  • There is an equalization issue; don’t necessarily need to equalize throughout the state but smaller rural colleges need assistance
  • Recommends further evaluating dual credit students, out of district students, students in CTE programs, and approaches to incentivizing outcomes
  • Recommends creating a fixed pool and fixed prices for outcomes
  • Todd Williams – Could you clarify the concept of revenue sharing? Are you talking about match funding?
    • Attempting to create a target for students; given that institution and students have given x amount to funding, if they’ve reached that than state covers the balance
  • Chair Carol Scott – Out of district tuition makes a lot of sense, how do we balance the needs of students without letting out of district students off the hook?
    • Pennsylvania has addressed this issue; community colleges bill the counties that the out of district student came from for the difference in tuition
  • Brenda Hellyer – Given that more competitive schools get more out of district students, how do you not disincentivize them from staying competitive?
    • Out of district counties pay for their students; they still receive the same amount
  • Gary VanDeaver – Many of the counties are suffering the same economic problems that the community colleges in the area are suffering from; they won’t be able to pay the difference just like they may not be able to give as much funding to their community colleges
  • Stephen Head – I don’t see charging the counties as a billing option
  • Larry Taylor – Some counties, like Harris, have multiple community colleges with districts within them; it would be difficult to send a bill to a county when there are multiple districts operating
    • When I said county, I meant district; fairness requires in some way that local entities help to pick up the difference rather than putting it all on the backs of students
  • Mark Escamilla – Our discussions are already moving in the area of prioritizing CE students, so we would like to continue this conversation with you
    • I would like to prioritize including these students in outcomes

 

Workgroup Updates

Dr. Steve Head, College Operations Workgroup

  • Analyzed trends and models throughout the county; haven’t found a model perfect for Texas
  • Evaluated use of shared services for cost reduction
  • Largest issues are dual credit and funding
  • Unsure of the role of coordinating board in deciding taxing and funding
  • Smaller colleges concerned about their ability to participate fairly in shared services
  • Worked with Alliance for Research on Regional Colleges to analyze small rural colleges
  • Recommends an entitlement program rather than allocation; would allow more funding for colleges that need it most

 

Dr. Brenda Hellyer, Student Support Workgroup

  • Presents report on fundable operating expenses; originally state meant to fund everything except facilities
  • Community colleges only receiving funding for 21% of operating costs
  • K-12 public school model can be used to inform community college funding
  • Worked with Texas Success Center to form pathways development for systemic community college reform
  • Worked to align pathways with workforce initiatives
  • Analyzed outcomes-based funding
  • Community colleges discounting 170 million dollars’ worth of tuition
  • Recommends giving community colleges ability for capital raising
  • Recommends increasing and modifying success-based incentives
  • Recommends incorporating cost-based structures

 

Dr. Mark Escamilla, Workforce Education Workgroup

  • Focusing on aligning costs, collaborations, and incentivizing regional efforts
  • Focus on credit and continuing education
  • Continuing to evaluate and recognize other programs around the country
  • Analyzed workforce and industry need; must refine alignment between programs and workforce
  • Focus on funding incentives, credential completions, job placements
  • Need to better align with K-12; programs such as dual credit and endorsements need opportunity and attention, but there are barriers related to advising
  • Focus on dual credit and transferability
  • Researched models from other states; Virginia and Georgia’s model resonates with Texas
  • Recommends:
    • Grants for schools that need initial funding to start workforce education programs
    • Adjusting or blending credit and noncredit programs for convertibility
    • Focus on job placement
    • Enhancing data for workforce needs
    • Incentivizing shared services
    • Strengthening alignment with high schools

 

Q&A

  • Chair Carol Scott – Is there an ability to share data between K-12s, community colleges, and four-year institutions?
    • Gary VanDeaver – The coordinating board has been looking to refine our database for the last two years; there will be two different dashboards, one for universities and one that is public
  • Todd Williams – We can’t just change our college enrollment numbers with “tweaks,” we need substantive change and post-secondary education is a critical component; need to think what will transform the system
  • Todd Williams – When K-12 was made an entitlement, a high school degree was sufficient for a livable wage. Now it is not. So how do we address the issue of dual credit?
  • Chair Woody Hunt – I agree, we are recommending to the state how to spend their money. We need to recognize their priorities; the governor says the number one issue is quantity and quality of our workforce to incentivize companies coming to Texas
    • Mark Escamilla – We are hearing more and more about how our students are much more prepared; short-term opportunities have had a great impact
  • Brian Jones – Do we have data on the student makeup and programs to determine gaps that need to be filled?
    • Gary VanDeaver – The gaps are profound in terms of gender, race, and economic status; the descriptive statistics are deeply troubling
    • Technical analysis underway to inform reports and programs
    • Need to focus on things that people that haven’t gotten focus in the past such as part-time students and adult learners
  • Chair Carol Scott – How are the work groups’ recommendations coming together over the next couple of months? How will they be synthesized
    • Chair Woody Hunt – Scheduling dates in July for draft recommendations; September 12 combined recommendations ready

 

Workforce Panel

Elizabeth McGee, Intel

  • Technology never more important than it is today; by year 2030, projected 100 billion connected digital devices
  • Data will drive 15 trillion in economic gain by 2030
  • Imperative to democratize access to data
  • As machines take on more work, humans need to be upskilled to keep jobs and match new labor force; 40% of skillset needs to be upskilled
  • Five out of top ten emerging careers related to data science
  • Data required in healthcare, transportation, sales, and more
  • 35% demand to skill gap for data
  • Intel for Workforce program created to respond
  • Program designed for entry level students; selected community colleges as the platform
  • Program seeks to provide confidence in AI, make technology accessible, and teach other soft skills
  • Layers technical skills; everything builds on itself
  • Ends with capstone and practical training to demonstrate skillset
  • 31 schools offer Intel curriculum; 4 in Texas
  • Goal to have program in every state by end of 2023
  • Some schools customize program; provide internships and labs
  • Can be implemented in multiple ways; introductory level injects AI into any curriculum, integration layers Intel program into existing computer science courses, and the full flagship program offers an associates degree
  • Partnership between industry and community colleges
  • Need current workforce to be reskilled in a way that is convenient, relevant, and accessible
  • To prepare for the future, need to teach students the future
  • Plans to expand course and add industry specific modules
  • Escamilla – What is the cost to get a program like this off the ground and the cost to sustain it?
    • Stephen Head – There is not necessarily a cost
    • If you were to build a lab from scratch, maybe 70-100 thousand

 

Stacy Putman, Ineos

  • Ineos privately held chemical company
  • Incremental changes will not help; staffing shortages because the workforce is not prepared
  • Across Texas, need for education
  • Need to collaborate with industry
  • Two-way benefit from working with industry; industry learns how to communicate with new workforce and students benefit from getting an education tailored to industry needs

 

Dr. Erica Yu, UT Health

  • Over 50% of undergraduate nursing applicants take prerequisites from community colleges
  • Community college important pipeline to nursing; attrition rates directly impact nursing applicant numbers
  • Associate degree nurses come from community colleges; critical to healthcare workforce
  • Early admission agreements with community colleges for UT nursing students
  • Nursing faculty shortage
  • During pandemic, met with clinical partners to discuss staffing and education needs of nurses
  • Students helped relieve the burdens of nurses on the floor during Covid; supporting vaccination efforts across state
  • UT employs a variety of healthcare workers from community colleges
  • Outcome based funding needs to prioritize students and employers; financial incentives should align with job placement
  • Texas faces nursing shortages; demand for registered nurses with grow 32% between 2018 and 2032 but supply will only grow 30%
  • There are 23,000 more open positions than nurses seeking to fill them
  • To support outcome-based funding, healthcare industry and community colleges need to communicate
  • Community college needs to prioritize a flexible education
  • College finance that aligns with state objectives; talent-based
  • 65% of nurses in Texas have a bachelor’s degree or higher; the other 35% community college associate degrees
  • As Houston economy shifts, incoming workers need to develop new skills
  • Need to focus on micro-credentials, stackable credentials, and reskilling
  • Community colleges provide an important pathway to higher education and other career focused programs

 

Q&A

  • Brenda Kays – Need for industry voice important as demand for credentials change
  • Todd – How has supply and demand changed for different occupations?
    • Yu – We are competing with travel nurse agencies; because of the shortage there is high demand and high wages being offered
    • Putman – Increase in salaries and increase in expectations in benefits packages; new interns showed higher pay is required

 

William Serrata, Texas Association Community Colleges

  • Community colleges essential to state economy; provide upward economic opportunity for over 100,000 students a year
  • Local accountability and focus create direct community impact
  • Last year, 1.1 million students in community colleges including dual credit, adult learners, projected transfers, and technical colleges
  • Partner with K-12s to provide high school students with college level opportunities
  • Texas has the highest percentage of adults who attended community colleges
  • Community colleges provide over 90% of certificates in the state
  • Recommends collecting data over credentials of community college alumna
  • TRUE program is a rapid development program centered around industry need; 6 months to complete
  • Beyond TRUE, community colleges provide reskilling and upskilling opportunities
  • Community colleges partner with corporations such as Verizon
  • Community college graduates help increase average wage of Texans
  • Current 50-year-old finance model no longer supports students and institutions; TACC members endorse recommendations for commission
  • Recommends state increase incentive models and move away from allocation model
  • Believe certificates and technical colleges should be included in outcomes funding
  • Model should ensure students across the state have opportunities they desire
  • Brandon Creighton – For funding, did you analyze a fixed pool vs specific dollar amount per outcome?
    • The funding model will be based on outcomes; we will embrace recommendations of commission
  • Stephen Head – What are your thoughts on the service area issue? Why are there so many out of district areas?
    • We believe we can encourage colleges to participate in shared services
    • We are encouraging areas to become part of taxing districts and there is room for more encouragement; only parts of 81 counties are taxing districts
  • Stephen Head – In the entitlement piece, are you thinking everyone would have a per student starting point?
    • Initially there should be a level base of funding so colleges can understand what the mechanism will be going forward; we don’t want to cut funding dramatically initially
  • Chair Woody Hunt – Do you see students being a state resource being a justification for state funding?
    • Absolutely; there is intrastate migration
    • The triangle is a beneficiary of education from throughout the state

 

Texas Community College Student Advisory Council Panel

Victoria Hoover, Tyler Junior College

  • Recent graduate of Tyler Junior College; went to community college in the 90s and again in the 2000s
  • Community college improved significantly from the 90s
  • Available jobs becoming increasingly technical; need for education
  • Recommends reevaluating criteria for student success points to include backgrounds; award more money to institutions giving night classes, daycare, and virtual options
  • Encouraging continued education programs rather than accredited courses
  • Adult students don’t have time like fresh out of K-12 students; it is more difficult for them to attend school and needs to be recognized

 

La’Kristie Davis, David College

  • First generation graduate
  • People with some form of post-secondary education live longer and better lives
  • Community college framed as a financially responsible way to start a degree; but not always accessible
  • Commuting can be costly; cost of tuition only the tip of the iceberg to attending college
  • Decrease in state funding responsible for increasing cost of college and increasing dropout rate
  • Recommends increasing state funding to community colleges and universities
  • Education is a right not a privilege

 

Cristina Navarro, El Paso Community College

  • Workforce education students are an integral part of community college system
  • Students with families and other obligations have little time
  • Grade specific stipends give students time and money
  • Not enough opportunities and partnerships for all the students in work-based programs
  • Recommends success-based funding
  • State funding could help create partnerships between colleges and employers

 

Isabel Torres, Austin Community College

  • Graduated ACC at age of 41
  • Texas workforce programs allowed for upward mobility in career
  • Parents must put their children first; education is difficult, and childcare is necessary
  • Recommends collecting data on number of parents in community colleges to provide appropriate support
  • Recommends focusing on the needs of working parents that want to continue their educations

 

TXCCCF Research Project

Dr. Lori Taylor, THECB

  • Number of ongoing projects working to explore community project data, costs, and experiences
  • Reports to be presented at upcoming working group session in July
  • Conducted mixed methods synthesis analysis on community college resilience in wake of Covid-19
  • Found decline in community college enrollment in Fall 2020; significant differences between racial, socioeconomic, age, and gender demographics
  • Technical enrollments did not decline as much as academic
  • Increase in flex enrollment
  • Creativity of community colleges to keep enrollment high; depended on federal funding
  • Supporting of online delivery varied by college
  • Stephen Head – Did you consider the flex enrollment a problem?
    • Not a problem; only misleading when compared to census enrollment data
  • Chair Carol Scott – What were the characteristics of the colleges that saw an increase in enrollment during Covid?
    • I have educated guesses; some were the ones with aggressive tuition action
    • I can check the data and get back to you